Volkswagen Set to Establish €3 Billion Battery Materials Joint Venture with Umicore

Volkswagen announced on Monday it has come to an agreement with Belgian materials company Umicore for a €3 billion battery parts joint venture (JV). With this move, Volkswagen has become the latest automaker to bring battery supply chain closer to home in its shift towards electric vehicles (EVs). Under the agreement, raw materials will still be sourced from across the world, but cathode production will be made in Europe, likely at Umicore’s Poland plant.

The JV, between Umicore and Volkswagen’s battery unit PowerCo, also plan to collaborate on recycling metals from battery materials.

Automakers across Europe has been looking to secure cooperation with battery makers in the continent as political pressure grows to bring supply chain, currently dominated by Asia, closer to home.

Volkswagen is targeting 70% of its sales in Europe to be fully electric by 2030, and is increasingly trying to bring its supply chains to the region to protect them from geopolitical tensions and reduce transport costs.

However, Europe’s battery industry is still fledgling. Mining of raw materials in countries such as Germany and Portugal has been held up by regulations and recycling facilities unable to develop at scale without the raw material on hand.

Under the €3 billion JV,  Umicore will produce enough battery precursor and cathode material for 160 gigawatt hours (GWh) of battery capacity, or enough to power 2.2 million vehicles.

It will start with material for 40 GWh of capacity by 2026 at Volkswagen’s first battery plant in Germany. The carmaker plans to build six battery factories in Europe totaling 240 GWh of capacity by 2030.

Umicore said last week it saw potential to increase the capacity of its Poland plant, which began production in July, to over 200 GWh in the second half of the decade, enough to power around three million EVs.

The companies also agreed that Umicore would refine cathode material for the first 60 GWh of capacity.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Russian Economy Starts Another Rough Week As Default Looming

The cost of Russia’s invasion of Ukraine and the impact of subsequent Western sanctions on the Russian economy will become much clearer this week, with a previously unthinkable sovereign default is on the horizon, more emergency central bank measures likely and a stock market crash guaranteed if it reopens.

International Companies Monitoring Western Sanctions on Russia

International companies that have big operations in Russia and Ukraine are closely monitoring Western sanctions on the country as Ukraine crisis continues to escalate. A number of manufacturing giants from Japan and Europe such as Hitachi, Mitsubishi, JTI, Danone, BASF, Toyota, Volkswagen and Renault have large operations in Russia or Ukraine. 

Indonesia to Limit Number of Smelters for Higher Value Nickel Products

Indonesia will limit building of new nickel smelters in order to push the industry to produce higher value products and follow green principles in the production process, the country’s investment minister Lahadalia said on Friday. Lahadalia said Indonesia needs to prioritize using reserves to create higher value materials including input for electric vehicle (EV) batteries. Many existing smelters in the country are producing nickel pig iron or ferronickel. 

Stay informed

error: This content is protected !!